Technology in Multinational Spa Management. Discussion with Jurgen Meyer

from Gaming & Leisure Magazine

Spring 2011 

G&L website:   www.gamingandleisuremagazine.com

Full issue at:  www.gamingandleisuremagazine.com/spring2011/Spring2011_Complete-C.pdf

I recently had an opportunity to catch up with Jurgen Meyer, a hospitality and leisure IT executive with significant global experience.  With his recent postings with Bangkok-based Six Senses Spas and Minor International, we were given an opportunity to explore technology issues facing multi-national spa management groups.

A few of the quick notes show that a) the number of spa and wellness sites continues to grow in most regions around the world, b) global economic realities are pressing these sites to continue to search for ways to reduce up-front capital expenditures and daily operating costs, and c) investment in technology remains important, but also out-of reach for many.

First, a bit about Jurgen Meyer:  After graduating from a Swiss hotel management school, Jurgen began his hospitality career in hotel operations and accounting in several hotels in Luxembourg and Paris. As computer systems became an evermore presence in the industry, Jurgen’s focus shifted to hospitality technology while at the Sheraton Paris.  His IT role with IHG progressed on as travelling installer worldwide and regional CIO.

Recruited by Mandarin Oriental Hotel Group, Jurgen became their first CIO for over 13 years. This was followed by a role as Senior Associate at Pertlink Limited where he was involved in some spectacular hotel IT projects. Jurgen discovered the Spa world in 2008 with Six Senses and currently with Minor Group, looking after IT in Anantara Hotels & Resorts, Anantara Spa and Mandara Spa.

[BH-G&L]  In your role as IT Director for a multi-national Spa Management firm, how valuable is data collection from remote sites to a central database?

[JM]  Spa businesses have evolved from their localized and independent focus into an international, tightly knit network of wellness providers worldwide. This evolution of a localized membership into a highly mobile, international clientele has required all services and administration to be centralized and available 24/7.

Spa brands have grown exponentially, allowing jet setting guests to find their preferred spa brands around the world. Allowing the multi-national to keep track of product in all locations worldwide allows the operator to better forecast procurement, negotiate better pricing as well as shipping costs. Seeing winners and losers everyday allows us to make quicker and better business decisions.

[BH-G&L]   How well do current systems address the data collection requirements of a multi-national?

[JM]  There are good systems out there which are installed in each spa and do a great job running the spa operation, inventory and membership programs. Many of these providers are only starting to address multi-national needs or even a global membership system.

[BH-G&L]   I have noticed the same.   There are various systems providing for the needs of a single site, and do so very well.   However, when a Director of Spas is looking to review spa data across all spas, there is a bit of work yet to be done.   Additionally, as these Corporate Directors travel around the world, they have been searching for better access to all their data through web-applications.

[BH-G&L]   Are there issues in converting currencies into comparative reports for corporate review?

[JM] Currency conversion issues have become a challenge well beyond spa businesses. Whilst a system can only report what it carries, the interpretation varies from company to company, from owned spas to managed spas and so on. 

[BH-G&L]   In your experience, have cloud computing and SaaS models  been employed by multi-national Spa groups? 

[JM] I wished there were many more cloud computing and SaaS options out there. This is the most economic and user friendly solution for all spa businesses. All spas need a system to operate, take bookings, sell products, keep inventory and pay commissions to practitioners.

A single local IT set up for a spa can be a capital investment ranging from 40-60k USD, which is huge when the spa has only 6 treatment rooms. This cost typically does not provide for any multinational needs or global database. Reducing this cost with a cloud based SaaS is the solution for this fast growing business.

At Six Senses I had introduced the SaaS solution provided by SpaBooker.   The system passed all the stringent Six Senses quality and operational requirements. They have been around for a very long time as the underlying SpaFinder engine and is available as SaaS.  It features online booking (also as mobile app), point of sales and inventory, full CRM, membership service, PMS interfaces and more.

[BH-G&L]   Aside from the cost of purchasing a system, spas have also needed to spend considerable time building their database.  One method some multi-nationals use to reduce the cost of implementation is to use a “database shell” that they can drop in on new spas.  Jurgen, what is your experience in using a "database shell", allowing the group to drop a database template into new spas?

[JM] The shell approach has worked well as most products and treatments are the same within the brand. The training time and installation time is reduced while we can pull in opening resources from sister spas  

[BH-G&L]   Similar to using a database shell to reduce the start-up cost across a group’s many spas, another method to reduce costs is to use internal staff to train staff at each new spa.   Jurgen, has "train-the-trainer" been an effective practice?

[JM]  Train the trainer is essential in the spa business. This "skin contact" operation very, very much relies on its practitioners and their skills which require very personal training. 

[BH-G&L]  An added benefit to having well trained staff within their organization, a multi-national can potentially reduce the cost of annual maintenance by covering the first line of support internally.  Rather than pay standard single-site support fees at a dozen or two sites, a group with well trained technicians may be able to pay reduced support fees .. economies of scale.

Multinationals have needs in common with the single site … reducing costs while implementing the best management system for their site(s).  However, they do also have a set of unique needs involving the collection of data, reporting standards and giving access to very mobile directors.

I’d like to thank Jurgen for his time and contributions to this review.